A Return Series Has an Arithmetic Mean of 10

question 50

Multiple Choice

A return series has an arithmetic mean of 10.5% and standard deviation of 13%.Assuming the returns are normally distributed what is the range of returns that an investor would expect to receive 90% of the time?

• A) 10.5% to 13%
• B) -2.5% to 23.5%
• C) -28.5 to 49.5%
• D) -15.5% to 36.5%
• E) 0% to 10.5%

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Definitions:

Cognitive Theorists

Psychologists who study how our thought processes influence behavior and emotions, focusing on learning, memory, perception, and decision-making.

Etiology

The study of the causes or origins of diseases or disorders, examining how and why they develop.

Abnormal Behaviour

Behavior that is deviant, maladaptive, or culturally inappropriate, which can be indicative of psychological disorder or mental distress.

Self-Actualization

In Abraham H. Maslow’s theory, an actualization of one’s potential arrived at by satisfaction of a hierarchy of needs visualized as a pyramid. At the base are biological or survival needs; the next step up is the need for friendship and affiliation; finally, there is an assurance of self-worth, which comes from giving and receiving love and from an internalized sense of self-esteem. In Maslow’s view, abnormal or dysfunctional behaviour results from a failure to attain the self-esteem necessary to achieve self-actualization.